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PASAY CITY, December 24 – The Social Security System (SSS) said that its new contribution schedule and the Workers’ Savings and Investment Program (WISP) will be implemented as of January 2021 in accordance with the Law of the Republic No. 11199 or the Social Security Law of 2018.
In a virtual press conference today, SSS President and CEO Aurora C. Ignacio said the SSS contribution rate would be set at 13 percent from the current 12 percent next year.
He added that the monthly minimum wage credit (MSC) would be adjusted to P3,000 of the current P2,000, except for members of Kasambahay and OFW whose minimum MSC will remain respectively at P1,000 and P8,000, while the MSC maximum will be at P25,000 from P20,000.
“Regarding the share of the employer and employee contribution, the additional one percent will be divided equally, so the employer’s share will be 8.5 percent from 8 percent, while the share of the employee will be 4.5 percent of 4 percent. It applies to employed members, OFW members based on land in countries with bilateral labor agreements with the Philippines and members of the OFW based at sea, ”said Ignacio.
Historically, from 1980 to 2016, the contribution rate increased only four times, while pensions increased 22 times, Ignacio explained.
In addition, in 2017, an additional monthly benefit of P1,000 was implemented for all pensioners without the corresponding adjustment in the contribution rate, which caused a reduction in the life of the SSS fund of 10 years.
“Thus, a year later, the 2018 Social Security Law was enacted. The new law provided, among others, a schedule of increases in the contribution rate, as well as the minimum and maximum MSC until 2025. Once they are implemented In full, the reforms under it will offset the adverse financial impact of the additional monthly benefit granted in 2017, ”Ignacio said.
During the press conference the issue of the second tranche of the P1,000 pension increase was also discussed.
Ignacio said that the SSS understands the difficult situation of its pensioners and recognizes the good intention of granting the second tranche of the additional monthly benefit of P1,000. However, to grant such additional benefit allocations, the actuarial soundness of the SSS must be ensured through in-depth studies, especially now that there is a pandemic and the collection of contributions to the SSS has experienced a significant decline.
“We must ensure that our current and future generation of affiliates, pensioners and their beneficiaries have access to social security protection through the programs offered by the SSS,” said Ignacio.
On the other hand, the SSS also presented the characteristics of the WISP, a safe, convenient, capital protected and tax-free individual retirement savings plan that will serve to increase the savings of the members of the regular program.
Since the regular program places a limit of P20,000 MSC on the benefit calculation, the WISP will cover contributions more than the P20,000 MSC up to the prescribed maximum of MSC.
Coverage under the WISP will be automatic for all private sector employees, self-employed, OFW and volunteer members who do not have a final claim in the regular SSS program, have contributions in the regular SSS program, and have an MSC that exceeds P20. , 000.
Contributions in WISP will be paid in conjunction with contributions in the regular SSS program.
“It allows faster accumulation of a worker’s savings due to the employer’s contribution share. In addition, the contributions to the WISP will be invested following the principles of security, high yield and liquidity, and according to the provisions of the SS Law of 2018, which will generate additional pension income for the contributing affiliates, ”said Ignacio.
The profits obtained from them will be distributed proportionally based on the member’s contribution.
The total accumulated value of the member’s account (AV) under the WISP will be the basis of their additional benefits, which will be given to them at the same time during their retirement, total disability and / or death benefits.
Benefits will be awarded in the form of an annuity or a lump sum, depending on how your benefit is paid under the regular SSS schedule.
The annuity will be granted in the form of a fixed monthly pension, which will be paid until the total liquidation of the member’s VA, covering at least 15 years.
Upon the death of a WISP pensioner, any remaining accumulated VA balance will be paid to their beneficiary in a lump sum.
For more information, follow SSS on Facebook at “Philippine Social Security System”, Instagram at “mysssph”, Twitter at “PHLSSS”, or join the SSS Viber Community at “MYSSSPH Updates”. (SSS)
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